Developments in the German equity market and its regulation
| DOI | https://doi.org/10.1108/eb024974 |
| Date | 01 March 1998 |
| Published date | 01 March 1998 |
| Pages | 238-248 |
| Author | Rüdiger von Rosen |
| Subject Matter | Accounting & finance |
Journal of Financial Regulation and Compliance Volume 6 Number 3
Developments in the German equity market
and its regulation
Dr. Rüdiger von Rosen
Received: 18th May, 1998
Deutsches Aktieninstitut e.V., Biebergasse 6-10, Frankfurt-am-Main 60313, Germany;
tel:
(
+ 49) 69 929 150; fax:
(
+ 49) 69 929 1511
Dr. Rüdiger von Rosen has been mana-
ging director of the Deutsche Aktieninstitut
e.V. (DAI) in Frankfurt since 1995. After
being assistant at the Institut für Kapital-
marktforschung (Institute for Capital
Market Research) from 1970 until 1973, he
became management assistant of the
Deutsche Gesellschaft für Wertpapierspa-
ren.
In 1974 he started his career at the
Deutsche Bundesbank, where he became
head of the President's office in 1980 and,
as of 1984, head of the press and informa-
tion department. In 1986 he was appointed
executive vice chairman of the Arbeitsge-
meinschaft der deutschen Wertpapierbbr-
sen (Federation of the German Stock
Exchanges). From 1990 until 1994 he was
member of the executive board of
Deutsche Borse AG (German Stock
Exchange).
ABSTRACT
The German stock market has developed by
leaps and bounds over the past two years.
German legislators have, for example, intro-
duced a large number of improvements that
have brought the underlying conditions of the
German financial markets into line with inter-
national
standards.
Market participants thereby
have the potential — above all through the
introduction of a single European currency —
to actively avail themselves of the resulting
opportunities.
The future will see progressive globalisation
and increasing international competition on the
financial markets and the
markets
for goods and
services. There will also be a greater
need
for
pension plans funded through the capital mar-
kets.
These developments will further promote
the utilisation of shares as a financing and
investment instrument in Continental Europe
and, especially, in Germany. Introduction of
the Euro will
considerably reinforce
these devel-
opments and the integration of markets.
The German financial markets are well pre-
pared to meet these challenges. Market partici-
pants are taking advantage of the improved
underlying legal environment to develop their
position among international competitors.
INTRODUCTION
In absolute terms, the German stock
market is the fourth largest in the world,
although it trails some way behind the
markets in the USA, Japan, and the UK. A
glance at market capitalisation (the market
price of publicly quoted domestic shares) in
selected countries makes this clear (see
Figure 1).
Also,
when comparing the stock mar-
kets with the economic performance of
various countries, Germany lags behind the
leading industrial nations. At the end of
March 1997, the market capitalisation of
domestic companies accounted for 31.4 per
cent of GDP in Germany. This compares
Journal of Financial Regulations
and Compliance, Vol. 6, No. 3,
1998,
pp. 233-248
© Henry Stewart Publications,
1358-1988
Page 238
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